Special Alert!

On June 8, 2011, the IRS issued the list of 1,744 Nevada nonprofits whose federal tax-exempt status has been automatically revoked.

The announcement of these revocations comes years after Congress imposed an annual filing requirement for all nonprofits and an automatic revocation penalty for those that do not file for three years in a row. Whether or not your organization is on the revocation list, we ask that you review the material and help spread the word to fellow nonprofits that may have had their tax exemption revoked, but don’t yet know about it.

How do I know if my organization is on the list?

Click here for an Excel spreadsheet of the 1,744 Nevada nonprofits with revoked status. The Chronicle of Philanthropy has a searchable database.

What should a nonprofit do now that it is no longer tax-exempt?

The National Council of Nonprofits has developed a special webpage and tip sheet on options available to organizations. Nonprofits that re-apply may request in a letter to the IRS that the reinstatement of their tax-exempt status be retroactive to the date of their original tax-exempt recognition, but the IRS will grant that request only if it determines that there was “reasonable cause” for the nonprofit to have missed the filing deadlines.  Make sure to carefully follow the instructions on the IRS website for requesting “retroactive reinstatement” of your organization’s tax-exempt status.

Email ANN for assistance in applying for reinstatement or questions.

Can a nonprofit raise funds while it is not tax-exempt?

Yes, but the nonprofit needs to be transparent and honest about the fact that it is not currently tax-exempt and, therefore, that contributions to it are not deductible to the donor.

Do we have other options for raising money?

Consider finding a fiscal sponsor: A nonprofit may want to explore partnering with a fiscal sponsor which can provide the nonprofit with the opportunity to continue to receive gifts that are tax deductible to the donor. Read about fiscal sponsorship.

What’s the best way to keep informed so we’re not caught by surprise in the future?

  • Join your state nonprofit association (the lowest cost in the nation).
  • Subscribe to ANN’s email lists (free).
  • Attend FREE roundtables state-wide (free).